Congress passes bill to help save Internet radio
Congress has cleared the way for a potential agreement intended to save the emerging Internet radio market from a crippling hike in copyright royalty rates.
The measure, which was sponsored by Rep. Jay Inslee, D-Wash., and now heads to the president, would green-light an anticipated deal between Webcasters and SoundExchange, a nonprofit that collects royalties for recording copyright owners from Internet radio stations and other digital radio services.
The two sides have been negotiating new royalty rates following a March 2007 ruling by the federal Copyright Royalty Board that dramatically increased the rates that Internet radio stations must pay artists and record labels. Internet radio stations say the new rates - which most but not all are paying - could effectively put them out of business.
Unless something is done, copyright royalties could eventually eat up as much as 70 percent of Internet radio industry revenue, by some estimates.
Tags: Radio , Internet
This work is licensed under a Creative Commons Attribution 3.0 License.